Malaysia – External Affairs Minister S Jaishankar delivered a pointed message about global trade challenges at the East Asia Summit in Malaysia on Monday, emphasizing that energy trade constricted by current policies has created significant market distortions. Speaking at the summit held on the margins of the Association of Southeast Asian Nations (ASEAN) meetings in Kuala Lumpur, Jaishankar articulated India’s growing concerns about supply chain reliability and market access restrictions.
Energy Trade Constricted by Market Distortions
Jaishankar’s remarks came against the backdrop of mounting strains created by the Donald Trump administration’s trade policies and sanctions regime in the United States. The minister highlighted that energy trade constricted through various measures has resulted in serious market distortions that affect global commerce and energy security.
“Energy trade is increasingly constricted, with resulting market distortions. Principles are applied selectively and what is preached is not necessarily practiced,” Jaishankar stated, making an apparent reference to the 25% tariff imposed by the Trump administration on India over Russian oil purchases and recent sanctions affecting energy trade with Russia.
Growing Concerns About Supply Chain Reliability
The external affairs minister emphasized that energy trade constricted by current policies has raised fundamental questions about the reliability of global supply chains. “There are growing concerns about the reliability of supply chains and access to markets. Technology advancement has become very competitive, the quest for natural resources even more so,” Jaishankar explained, though he avoided directly naming the US trade policies that have created this turbulence.
India has faced multiple challenges in recent months. The Indian government has expressed concerns about restrictions imposed by China on exports of rare earth minerals and heavy machinery, adding another layer of complexity to the situation where energy trade constricted by various factors threatens economic stability.
Impact of US Tariffs and Sanctions on India
The context of Jaishankar’s statement about energy trade constricted becomes clearer when examining recent US actions. President Donald Trump imposed a 25% penalty on India in August, following an earlier 25% reciprocal tariff on Indian goods. Despite ongoing trade discussions between Indian and American officials, Trump imposed fresh sanctions last week on Russia’s two largest oil companies, Rosneft and Lukoil, directly affecting energy supplies to India.
Russian crude has accounted for more than a third of India’s energy imports in 2025, with purchases significantly increased after Western sanctions following Russia’s invasion of Ukraine. New Delhi has consistently maintained that its energy purchases are guided by market conditions and aimed at safeguarding consumers’ interests in an increasingly volatile global environment.
India’s Response to Changing Global Dynamics
Jaishankar indicated that the situation where energy trade constricted will inevitably trigger responses from the international community. “Adjustments will be made, calculations will come into play, fresh understandings will be forged, new opportunities will emerge, and resilient solutions will be devised,” he said, suggesting that nations will adapt to the new reality.
He emphasized that fundamental economic realities cannot be ignored. “At the end of the day, the realities of technology, of competitiveness, of market size, digitisation, connectivity, of talent and of mobility cannot be ignored. Multipolarity is not just here to stay but to grow,” Jaishankar stated, reinforcing India’s position on the evolving global order.
Call for Zero Tolerance on Terrorism
Beyond discussing how energy trade constricted affects global stability, Jaishankar addressed security concerns, describing terrorism as a “continuous and corrosive threat.” He called for the world community to “display zero tolerance” with “no room for ambivalence” towards terrorism, asserting that “our right of defence against terrorism can never be compromised.”
Conflicts Threatening Food and Energy Security
The minister highlighted that ongoing global conflicts have significant repercussions beyond the battlefield. He noted that these conflicts have undermined food security, threatened energy flows, and disrupted trade—all contributing factors to why energy trade constricted has become such a pressing concern.
“India, therefore, welcomes the Gaza peace plan. We also seek an early end to the conflict in Ukraine,” Jaishankar said, connecting conflict resolution to broader economic and energy security objectives.
India’s Regional Commitments and Cooperation
During his participation at the East Asia Summit, which brings together ASEAN member states with eight key dialogue partners including India, Australia, China, Japan and the United States, Jaishankar reaffirmed India’s commitment to regional cooperation. He pledged India’s support for activities ensuring a peaceful and prosperous future for the region.
This includes bolstering maritime cooperation in line with the ASEAN Outlook on the Indo-Pacific and the United Nations Convention on the Law of the Sea (UNCLOS).
Myanmar Highway Project and Cyber Scam Concerns
Jaishankar also provided updates on regional infrastructure projects, noting that the India-Myanmar-Thailand trilateral highway “continues to progress.” However, he raised concerns about cyber scam centres in the region that have entrapped Indian nationals, with hundreds believed to have been lured to facilities along Myanmar’s border with Thailand.
The minister’s comprehensive address underscored that while energy trade constricted remains a critical challenge, India continues to pursue regional cooperation, infrastructure development, and security partnerships to navigate an increasingly complex global landscape.
